Global markets pause as soft US retail data boosts bonds and yen
US retail sales figures slowed stock market momentum while boosting Treasury bonds and the Japanese yen. Mixed earnings in Australia also drove regional moves.
Insights:
A surprise contraction in U.S. retail sales (core retail sales) for December has triggered a significant shift in global markets, pushing benchmark 10-year U.S. Treasury yields to a one-month low of 4.14 percent. This development in the United States 
US saw yields drop nearly six basis points as investors sought the safety of bonds, effectively stalling a recent rebound in the S&P 500 index.
US saw yields drop nearly six basis points as investors sought the safety of bonds, effectively stalling a recent rebound in the S&P 500 index.The volatility was sparked by data showing core retail sales fell 0.1 percent in December, accompanied by downward revisions to previously reported figures for both November and October. These softer-than-expected numbers provided a stark contrast to recent economic optimism, prompting a rapid risk-off move across international exchanges. Market strategist Brent Donnelly noted the immediate reaction as traders recalibrated their expectations for the world's largest economy.
